Cost and sales information for the most recent fiscal year are shown below: WALLACE RIVER COMPANY Cost and Sales Information For the Year Ended December 31 Purchases of raw materials Raw materials inventory, beginning Raw materials inventory, ending Depreciation, factory Insurance, factory Direct labour Maintenance, factory Administrative expense Sales Utilities, factory Supplies, factory Selling expense Advertising expense Indirect labour, factory Work in process inventory, beginning Work in process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending $ 93,000 13,000 20,000 43,800 5,000 63,000 30,000 71,200 480,000 27,000 1,000 81,200 21,200 65,000 7,000 30,000 10,000 40,000 Required: 1. Prepare a schedule of cost of goods manufactured. Required: 1. Prepare a schedule of cost of goods manufactured. X Answer is complete but not entirely correct. WALLACE RIVER COMPANY Schedule of Cost of Goods Manufactured For the Year Ended December 31 Direct materials: 13,000 93,000 106,000 20,000 $ 86,000 63,000 Raw materials inventory, beginning Add: Purchases of raw materials Raw materials available for use Add: Raw materials inventory, ending Raw materials used in production Direct labour Manufacturing overhead: Depreciation, factory Insurance, factory Maintenance, factory Utilities, factory Supplies, factory Indirect labor-Factory OOOO 43,800 5,000 30,000 27,000 1,000 65,000 OOOOO Total overhead costs Total manufacturing costs Add: Work in process inventory, January 1 171,800 320,800 7,000 327,800 30.000 $ 297,800 x Add: Work in process inventory, December 31 Cost of goods manufactured 2. Prepare an income statement. X Answer is not complete. WALLACE RIVER COMPANY Income Statement For the Year Ended December 31 $ 480,000 Sales Cost of goods sold: Finished goods inventory, beginning Add: Cost of goods manufactured $ 10,000 297,800 307,800 307,800 172,200 Finished goods inventory, beginning Deduct: Finished goods inventory, ending Gross margin Selling and administrative expenses Selling expense Administrative expense Advertising expense Goods available for sale Operating income 71,200 81,200 X 21,200 X $ 173,600 $ (1,400)